Worst Stretch of Losses for Tech Stocks Since December

Tech stocks are headed for their worst stretch since December , threatening to unravel 2023's stock-market rally

The big question now is whether a further unraveling of Big Tech’s advance will take the broader market down with it, or whether other corners of the market will help to pick up the slack. Together, the biggest tech stocks are responsible for roughly 40% of the valuation of the Nasdaq-100 following last month’s special rebalancing.

James St. Aubin, chief investment officer at Sierra Investment Management, said it looks like traders have been content to rotate into other areas of the market that aren’t quite as richly valued as the Big Tech names.

“The leaders are fading, but the laggards are coming up right behind them,” St. Aubin said during a phone interview with MarketWatch. “If money was flowing out across the board and going into cash and bonds, that would be a bit more concerning.”


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